The rise of Generation Rent- number of young homeowners halved in the last 20 years

The rise of Generation Rent- number of young homeowners halved in the last 20 years

The number of 25-year-olds who own their own home has more than halved in the last 20 years as soaring prices and a generational shift have knocked young people off the housing ladder.

Research by Savills for the Local Government Association found that 46pc of all 25-year-olds owned their home 20 years ago, compared to 20pc now. It is not just young people who have been left out of home ownership, which has fallen among people of all ages 6.8pc since the peak in October 2004, and it now stands at 64.1pc.

This fall has been caused by the high cost of living, which has grown at a faster rate than wages. While renters pay an average 34pc of their total household income on rent, and social renters pay 29pc; the average homeowner pays just 18pc their income on a mortgage.

Average house prices are now at 7.9 times average earnings, with the need for a high deposit creating an impassable barrier for some young aspiring homeowners.

The research also found that there has been an 88pc fall in the amount of social housing built compared to 20 years ago.

Cllr Martin Tett, the LGA's housing spokesman, said: “The Government’s Housing White Paper [to be released in the new year] is an opportunity to boost housing supply and affordability.

"It must recognise that a renaissance in house building by councils will be crucial to helping ensure the mix of homes to rent and buy that are affordable for those people that need them.

“This means powers and funding given to councils to replace sold homes and reinvest in building more of the genuinely affordable homes our communities desperately need."

The LGA argued in a new report for more power for councils to borrow to build more affordable homes, and to make it easier to make compulsory purchases of land that has planning permission but is not being built on.